Bybit, one of the largest exchanges in the world, has revealed it is strengthening its risk management controls. This change is a part of the company’s ongoing efforts to provide its users with a safe and reliable platform. As a result of the new system, Bybit’s 300-person risk management and technology management department will be better equipped to keep the company’s operations secure.
A look at Bybit’s risk management approach
Bybit’s current security setup consists of three separate committees: one for technical risk, one for business risk, and one for AML. With the new cutting-edge security infrastructure, Bybit will be able to detect, deter, defend, report, and take action against intruders, attempted money launders, and account hackers. The new and improved “wallet control system 3.0” accommodates all possible business and user-behaviour scenarios.
The wallet control system will bolster the company’s capacity to track and adhere to a wide variety of KYC, AML, and sanctions rules on a global scale. Various identifiers, such as a user’s location, a device’s ID, and a user’s ID, are in the system. It monitors out-of-the-ordinary activities, verifies the true identities and locations of all customers. Also, it prevents fraudulent transactions, and detects intruders with incredible precision.
Critics of digital currencies often argue that the lack of a robust regulatory framework has made the industry attractive to criminals and money launderers. Therefore, some governments have been creating regulations in the sectors. Still, many countries have not caught up, so it makes sense for crypto companies to erect their own regulatory hurdles.
Also, crypto companies benefit from a safe and well-regulated crypto platform. Businesses benefit from increased consumer confidence when there is a proper risk management framework. Bybit has stated that it supports a robust and transparent cryptocurrency industry. It is implementing a wide variety of security, risk, and compliance procedures, including the one described above.